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Budget: Up, up & up

Be prepared to shell out more on various luxury and consumer goods, reports Atul Mathur.

delhi Updated: Mar 22, 2010 00:21 IST
Atul Mathur

Be prepared to shell out more on various luxury and consumer goods.

In his seventh consecutive budget, Delhi finance minister A.K. Walia may announce additional taxes and tariff that might burn a hole in your pocket.

Last week, the Delhi CM had set the tone when she hinted at levying new taxes to make “Delhi stand on its own feet”.

If feelers from the government are anything to go by, almost everything from cigarettes and liquor to watching films, may get costly. “Our tax structure would be brought at par with other states,” said a senior official in the government.

That means Delhi’s tax structure, be it value added tax (VAT), excise, road, entertainment or luxury tax, is up for revision. Delhi’s tax structure is among the lowest in the country.

A large number of people from neighbouring states of Haryana, UP and even Rajasthan come to Delhi to buy liquor and other consumer items. At times they have even bought vehicles with Delhi’s registration number.

Hindustan Times has already reported how the transport department has proposed an increase in road tax on two wheelers (by 50 per cent) and cars (25 to 125 per cent). The revised road tax rates would reduce the gap in vehicle registration cost between Delhi and UP or Delhi and Haryana.

Sources said against the budget outlay of Rs 25,760 crore in the current fiscal, Delhi’s collections are expected to reach little over Rs 20,000 crore. With the Centre giving Delhi a cold shoulder in the Union Budget, Delhi will have to look at other options to raise its collections.

While the stamp duty on registration of properties may not see changes, sources said the government has decided to revise circle rates. Sources said this would ensure more revenue for the state.